Key takeaways

• US stocks were little changed and Treasuries fell.
• European stocks traded mixed, as government bonds fell.
• Asian stocks mostly fell; Hong Kong rallied.

Markets

US equities closed little changed on Wednesday, as investors continued to monitor geopolitical developments in the Middle East and awaited more key US jobs data due this week. The S&P 500 ended flat.

US Treasuries fell (yields rose), aided by upbeat ADP employment data ahead of Friday’s highly anticipated unemployment and nonfarm payrolls reports. 10-year yields rose 5bp to 3.78%.

European stock markets lacked clear direction on Wednesday. The Euro Stoxx 50 rose 0.2%. The German DAX fell 0.3% while the French CAC ended flat. In the UK, the FTSE-100 rose 0.2%, aided by higher energy stocks.

European government bonds fell (yields rose), in a reversal of Tuesday’s risk-off rally. 10-year German yields rose 5bp to 2.09% as 10-year French yields rose 4bp to 2.86%. In the UK, 10-year gilt yields were up 8bp to 4.02%.

Asian stock markets mostly declined on Wednesday amid rising concerns over geopolitical developments in the Middle East. Japan’s Nikkei 225 and Korea’s Kospi lost 2.2% and 1.2%, respectively. However, Hong Kong’s Hang Seng surged 6.2%, extending the recent stimulus-driven rallies and led by gains in tech heavyweights and real estate shares amid further easing of home-purchase restrictions in China’s top-tier cities. Onshore markets in China and India were closed for holidays.

Crude oil prices extended gains on Wednesday, as ongoing concerns over supply risks in the Middle East overshadowed data showing a rise in US weekly crude and gasoline stockpiles. WTI crude for November delivery rose 0.4% to USD70.1 a barrel.

Key Data Releases and Events

Releases yesterday

In South Korea, the manufacturing PMI fell to a 15-month low of 48.3 in September, from 51.9 in August. The output and new orders indices declined as overseas demand weakened.

In Mexico, the manufacturing PMI remained in contractionary territory at 47.3 in September, down from 48.5 in August. This reflected weakness in new orders, production, and employment.

Releases due today (3 October 2024)

US ISM Services Index has been relatively volatile as of late but has trended lower since the start of 2024. The consensus forecast is for a modest rise in September’s reading.

https://www.hsbc.com.my/wealth/insights/asset-class-views/investment-daily/2024-10-03/